U.S., Japan Face Risks As Havens, IMF Warns

By

Sudeep Reddy And

Eleanor Warnock

Oct. 9, 2012 5:35 p.m. ET

TOKYO—The world's two largest advanced economies, the U.S. and Japan, face growing long-term risks from investors fleeing trouble spots around the world, the International Monetary Fund warned Wednesday.

Safe-haven flows into the U.S. and Japan are pushing interest rates down and lulling investors and policy makers into complacency, the fund said in a report on financial-stability risks released ahead of its fall meeting here.